- 24 Jul 2024
- ICICI Securities
UNION BUDGET 2024-25 CUTS IMPORT DUTIES ON RAW MATERIAL
News: In Union Budget 2024-25, the government has proposed exempting basic custom duty on ferro nickel and ferrous scrap. Additionally, it has extended the zero-custom duty on certain specified raw materials used in making CRGO steel until 31ST March’26
Views: This marks a positive development for stainless steel producer, as ferro nickel is a key raw material used in stainless steel production. Due to lack of domestic availability, it is largely import dependent. We are positive on Jindal Stainless steel, a leading player in the stainless-steel space, will be a key beneficiary of this development. Moreover, the extension of zero custom duty on raw materials used for CRGO steel, a grain oriented electrical steel having applications in energy efficient transformers, will benefit companies like JSW Steel. It has a joint venture agreement with JEF Steel Corporation to set up a facility in Karnataka with a planned investment of ₹5,500 crore and SOP in FY27.
Impact: Positive